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Are Basic Materials Stocks Lagging Alpha Metallurgical Resources (AMR) This Year?

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The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Alpha Metallurgical (AMR - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.

Alpha Metallurgical is one of 236 companies in the Basic Materials group. The Basic Materials group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alpha Metallurgical is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AMR's full-year earnings has moved 48.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that AMR has returned about 15% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of -5.7% on a year-to-date basis. This means that Alpha Metallurgical is outperforming the sector as a whole this year.

Another stock in the Basic Materials sector, Steel Dynamics (STLD - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 7.5%.

For Steel Dynamics, the consensus EPS estimate for the current year has increased 9.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Alpha Metallurgical is a member of the Mining - Miscellaneous industry, which includes 56 individual companies and currently sits at #168 in the Zacks Industry Rank. On average, this group has lost an average of 13.6% so far this year, meaning that AMR is performing better in terms of year-to-date returns.

On the other hand, Steel Dynamics belongs to the Steel - Producers industry. This 22-stock industry is currently ranked #163. The industry has moved -1.4% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Alpha Metallurgical and Steel Dynamics as they attempt to continue their solid performance.


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